Asia Pacific Wi-Fi Chipset Market size exceeded USD 6 billion in 2019 and is anticipated to expand at a CAGR of 3.5% from 2020 to 2026.
The Asia Pacific Wi-Fi chipset industry growth is due to rising deployment of public Wi-Fi hotspots in airports, malls, stadiums, parks, coffee shops, etc. The demand for public Wi-Fi hotspots is also gaining pace in the regional IT companies, hospitals, and hotels, accelerating business opportunities, and enhancing user experiences. Several government initiatives to deliver free Wi-Fi zones, meet the rising demand for high-speed internet connectivity, and improve digitalization will accelerate the market growth opportunities. For example, the Australian government introduced CBRfree, a public Wi-Fi network, which focuses on smart & connected digital cities and includes the deployment of free Wi-Fi in Australia.
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The IEEE 802.11n (SB and DB) segment accounted over USD 960 million revenue in 2019. The IEEE 802.11n standard is majorly adopted in the WLAN communication network as it can extend the range of wireless transmission and enhancing the reliability & speed of the network. Wi-Fi chipsets with IEEE 802.11n standards offer a data transfer rate of up to 600 Mbps, increasing their adoption in large enterprises and outdoors.
The dual band configuration will observe around 3.5% growth rate till 2026. Dual band Wi-Fi chipsets utilize the frequency of both 2.4 GHz and 5 GHz frequency bands. It enhances the network speed and interference from other devices, thus boosting their adoption in advanced automotive applications. Market players are also launching innovative products in the market to cater to the high demand from major automotive OEMs. In January 2020, Qualcomm developed a Dual-MAC Wi-Fi Chip, “QCA6595AU” for automotive applications.
The China market for Wi-Fi chipset is predicted to record a CAGR of around 4% through 2026 driven by the rising internet penetration in the region with high internet connectivity. Around 800 million Chinese citizens use the Internet with strong fiber, broadband, and high internet coverage even in remote regions. This will accelerate the demand for high-quality Wi-Fi chipsets. The rising number of internet users has positively influenced the government to establish wireless infrastructure in the region, adding an opportunity for the- market expansion. For example, in December 2019, China implemented around 10 million public Wi-Fi hotspots, among which four million were government Wi-Fi hotspots.
Key players operating in the Asia Pacific Wi-Fi chipset market are Cypress Semiconductor Corporation, Qualcomm Technologies, Inc., MediaTek, Inc., Broadcom, Inc., ON Semiconductors, and Intel Corporation, among others.
Companies are continuously focusing on research & development and new product launched, delivering high competitiveness compared to other players. For example, in December 2020, Espressif Systems developed the ESP32-S3 integrated with 2.4 GHz, 802.11 b/g/n Wi-Fi, and Bluetooth-Low-Energy 5 connectivity that delivers long-range support.